Receivers get rolling in Qld

Receivers’ sales have ignited Queensland’s property market with the sale of former MFS Group’s Circle on Cavill pushing the total to $170 million in a month.

As foreshadowed in The Australian Financial Review, Sydney-based EG Funds Management, which manages about $750 million in property funds, scooped up the 12,500 square metres of retail and office space at Surfers Paradise for $40 million.

The sale, albeit at a heavy discount to
Suncorp
by about $60 million, brings the total major receiver transactions in Queensland in the past month to more than $170 million and has helped to set a pricing floor.

Recent sales include the $25 million distressed land purchase at Redbank Plains by listed residential developer
Devine
and
AVJennings
’s purchase of the stalled Elysium development at Noosa from Bank of Scotland for an estimated $50 million. The transactions follow RACV’s purchase of the distressed Noosa Sanctuary development for about $60 million.

Receiver for Circle on Cavill, Ernst & Young partner Justin Walsh, said the large assets sold over the past few months demonstrated that a “real momentum" was back in the market. “We have been really happy with the results in the selling campaigns and, probably more importantly, the number of parties there are with the capacity to complete transactions and conduct genuine due diligence," Mr Walsh said.

“There is no doubt that the momentum in the market has improved, particularly in south-east Queensland. Judging from the experience we have had, it looks like the banks are showing renewed interest in providing debt finance for property transactions."

The sale of Circle on Cavill was negotiated by Sam McVay and Dan McVay of McVay Real Estate, and Mark Witheriff and Lachlan Harris from CB Richard Ellis.

“Pricing is very important and the market is very sensitive to this at the moment," Sam McVay said. “Six months ago, the feeling was that no one wanted to catch the falling knife but you get the feeling now that the market has hit the bottom and things are improving.